Down payments

The percentage of low down payment loans using private mortgage insurance continues to grow, and should continue as more first-time homebuyers get conforming loans, according to Keefe Bruyette & Woods.

A Fannie Mae test to handle the private mortgage insurance process for lenders may raise concerns that it's going outside the scope of its secondary market mission. But the effort reflects its mandate to explore new credit-risk transfer alternatives, a company executive said.